An article in Governing highlights findings from a recent survey released by the National Association of State Budget Officers (NASBO). The report details estimated expenditures for fiscal 2015 and proposed expenditures for 2016. From the Governing article,

Overall, state spending is set to continue to climb in the new fiscal year, but at a slower rate than before. The NASBO survey finds general fund expenditures are projected to grow 3.1 percent in fiscal 2016 without accounting for inflation, down from a 4.6-percent gain the prior year.

Total state spending has grown each year since 2011 following cuts that states incurred in the aftermath of the Great Recession. Still, though, aggregate state spending remains slightly below its 2008 peak after adjusting for inflation.

Overall, the survey indicates that most states are increasing their investment in K-12 education, while transportation funding is declining.

States are also becoming reliant on sales taxes since revenue from the income tax has declined.  To balance state budgets, most states are relying on targeted budget cuts.